Raising Cannabis Capital 0145: DataOwl

Through mergers and expansion dispensary chains must contend with many different software platforms.   DataOwl's POS overlay makes integrating multiple platforms easy and consistent.   Dan Hirsch joins Dan Humiston to talks about their round-the-clock support and allowing their customers to maintain and own their data.

Produced By MJBulls Media | Cannabis Podcast

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Dan Humiston:
Just a quick announcement before today's show that November is Investor Month for the entire month of November. We will be featuring twelve Cannabis investors. So if you're a Cannabis company that's raising capital earning credited investor that's looking for a firm to manage your Cannabis investments. Make sure to listen to Raising Cannabis Capital in November and get ready for twelve Cannabis investor episode found to be valuable to those small operators and our largest customers.

Dan Hirsch:
So that's one of the things we do that is quite unique. And I think the other place we really distinguish herself is the level of data mining that we do. But we also don't try and own their data. We make their data usable for them.

Dan Humiston:
From MJbulls media. It's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show, how this company is helping dispensaries manage the data from all their software platforms with one uniform overlay. Raising Cannabis Capital, we are joined by Dan Hirsch from Data. Dan, welcome to the show.

Dan Hirsch:
Thanks, Dan.. Nice to meet you. Good name for you. I think you're my first, Dan..

Dan Humiston:
Today, my first dan yeah, Data Owl is a data miner data aggregator. And I know that sounds kind of technicals. Let me read something directly from your Web site, because I think it does a great job sort of visualizing in a less technical way what you really do. And this is from the Web site. We're decoders of human behavior. We access the interest and the desires of your customer from the data which is hidden in the P.O.S. system. And then we translate it into simple click to accomplish task and just start right there. Just kind of give us an overview as to how you do this.

Dan Hirsch:
We really start with the detailed data data rich industry as you go Cannabis. Industry has more data collection than many industries because of some of the regulatory things we're able to take in access that data out of their point of sale systems and make that data usable in ways that drive revenue and save costs.

Dan Hirsch:
For example, we're able to look at the individual transactional activities of all of your customers and create real time and dynamic cohorts based on what they do, which enables one to one communication between the dispensaries and their customers based on the customer's actual actions, what they buy, when they buy, how often they buy. And the difference translates into unparallelled are ways that we're delivered. 10 20 thousand are away from marketing, which is unheard of in other industries. The feeing ability to really communicate with customers on that individual basis, yeah, making them feel it's about them translates into greater loyalty. And of course, greater purchasing.

Dan Humiston:
And you can do this. All right. From your phone on your Web site, I see that the app is right on your phone solutes.

Dan Hirsch:
We worked closely with our dispensary partners, identify what we'll call pain points and solve those problems and then make it really easy to do.

Dan Hirsch:
And so you can do campaigns directly from the phone. We automate the ability to make your inventory consumer facing and distributed through multiple channels, from e-commerce to in-store menus to third party listings services and do it cohesively.

Dan Hirsch:
Even if you use more than one point of sale systems, you can do a text messaging blitz by a particular customer segment that buys a particular type of product, can drill it down as precisely as you want, and you could do that with text messaging or with emails. And I mean, I really loved the access you have with with the smart menu, how you can change that around in all the different stores.

Dan Hirsch:
And some of the nice features with these tools are that ability to make the process simple enough and easy enough with these tools where it can be run by the person who handles inventory at the store level and they can easily publish these menus. You know, designers, you don't need other people, you build it and the tool does it for them.

Dan Humiston:
What separates you from other companies that works with data is that you're really hands on with your customers and providing the support that they need because there's a lot of turnover in retail. I think that's really one of the things that separates you from other companies.

Dan Hirsch:
Absolutely. I think there's two things we do that are pretty unique in this industry. So we provide unlimited service, customer service and support trends, of course, because you hit the nail on the head. It's a retail business and there's a fair amount of turnover. And so how do you keep that knowledge alive? We help them with that. And we found this to be valuable to those small operators and our largest customers like. And so that's one of the things we do that is quite unique. And I think the other place we really distinguish ourselves is the level of data mining that we do. But we also don't try and own their data. We make their data usable for them. There's, of course, a lot of companies trying to access all this data and use it. And I got experience from other industries that tell you very clearly that as this industry matures, the operators aren't going to share that information freely.

Dan Hirsch:
They want to own that information.

Dan Humiston:
You talked about the industry maturing, but I can even feel changes going on within the industry right now. And those changes are prompting a need for what you provide.

Dan Hirsch:
Absolutely. So even two years ago, the industry was still very much one off, maybe one or two location operators still really weren't operators confronted with the complexity of multi store multi-location operations, let alone the complexity of multi state operations. Of course, each state has its own regulatory. In addition, the M&A side of this is creating some of the things you see in other industries where is operationalizing companies that are already in business and bring differences and how they're doing things. Different systems they're using create very serious challenges to maximize the newly acquired companies success. So we give them tools to limit their needs for them to materially change their day to day operations and someone else.

Dan Humiston:
Okay. Yeah. If you're involved in an acquisition, you bring in a new five, six store chain. You don't want to have to have two systems going. You want to be able to roll them into your system.

Dan Humiston:
The one platform that your company is operating on, which we sit across the top of the system. They can't always really just switch all their systems. They deluging using systems that may not even be compliant in every state. A lot of these operators are using tools that work in one state and may not be located in other states, as you know. And so we sit top those tools and make it very easy for them to keep continuity.

Dan Hirsch:
And again, to function if you are like a brand and all of their standard operating procedures remain the same, all their training manuals are there, everything can remain the same. The store employees don't realize that they might be two or three layers down working on different systems because all they see is the same screens that they've been trained.

Dan Humiston:
I want to take a quick break to thank you for listening to today's show as the leading Cannabis podcast network. We're constantly adding new Cannabis podcasts to support our industry's growth. And that's why we're so excited to announce our newest podcast, The Cannabis Breakout, which premieres October 18th. The show's about the thousands of Americans who remain in prison for violating Cannabis laws that have long since been overturned. The Cannabis breakout gives Cannabis political prisoners a voice. If you're a former Cannabis prisoner or have a loved one who is a Cannabis prisoner, we want to share your story. Please go to MJBulls.com and sign up to be a guest.

Dan Hirsch:
The business model on this. You provide subscriptions to the different dispensaries that we're a fast company.

Dan Hirsch:
So it's a subscription business. Our modules are all individually mix and match E-Harmony course. Different states limit different tools they can use and the needs may be different depending on the life cycle of that particular dispensary. A newly opened one. She's one that's been operating for years. All of our modules are mixing batch kalakaua.

Dan Humiston:
Well, we spoke earlier and you're one of the few companies, at least on the tax side, that, you know, approaching the industry a little differently in that you're profitable company. You started this thing and you built a company that's profitable in the tax side, which is rare.

Dan Hirsch:
Yeah, we're very fortunate. You know, we're having incredible growth. We're on pace to see 500 percent year over year growth. And yet while doing that, we broke even in Q2 really being able to manage our cost structure and focus on a targeted approach to the customers were trying to win, looking for the customers that are positioned to be here for the long haul. Because we, of course, have a very rapidly evolving industry. And so we really took an eye towards the requirements and needs some of the larger, more sophisticated players and our smaller customers all benefit to because in effect, we are over indexing to the needs of public company requirements for data security and things of that nature. And there's benefits for all of our customers.

Dan Humiston:
But to provide that type of hand-holding that you do, you have a lot of growth ahead of you, because if you want to maintain this type of level of service that you're known for and also expanded at the rate you're continue to expand it, it's going to take a lot of growth. Are you going to raise any capital to support this growth?

Dan Hirsch:
Absolutely. So we started the business in early 2016 and we've only raised 1.5 million dollars, even though we've been able to break even. We know we have to continue to keep up with the pace of change. And as you said, skiing or some of these things that make us unique and so we are out doing around was looking to raise about two and a half million dollars.

Dan Hirsch:
And certainly they're seeking interest in investors to help us execute on this vision whenever we have a Cannabis tech company that's breaking even or make a profit, at least in this short a short period of time.

Dan Hirsch:
That's always a good sign if you do have people who are interested and reach out to you directly. My email is Dan d._a and at Gatta, our DHEA that you got out.

Dan Humiston:
Dan, thanks for being on the show. This is really exciting project that you're working on right now and I'm anxious to see how it progresses.

Dan Hirsch:
Thank you, Dan.. It was a pleasure to be here and really appreciate the opportunity to chat with you, sir.

Dan Humiston:
Good luck with this one.

Dan Humiston:
Today's show was made possible by the generous support of our sponsors. Like all 36, the country's premiere blockchain payment processing platform that's providing dispensaries and its customers with a safe and secure payment option other than cash. To learn more. Go to Op. 36. Today's podcast was produced by MJBulls Media. The industry's premier Cannabis Podcast network with original music, produced in part by Jamie Humiston.

Dan Humiston. And you've been listening to the Raising Cannabis Capital.

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